Irish Property Market chat II - *read mod note post #1 before posting*

In my view the rental market is being prevented from crashing with repeated supply-quenching measures from the government from eviction bans, shuttering construction sites, social housing leases and purchases to take properties out of the private rental market, no efforts to introduce vacancy taxes etc. Whilst not the obvious intention to quench supply, each of these measures has directly reduced supply of rentals to the private rental market.

If the rental market crashes the whole property market crashes for reasons I've stated before. It is a charade that the property market is sustainable and reflects a booming, successful economy and I think the government needs constant new schemes to reduce the supply of rentals in order to prop up the whole property market. However, that doesn't seem to be possible in my view so when it does start to unwind, and I think it already has started that process, it will be quite a substantial reversal in the rental market - thinking of €2.5k pm rent for basic, small two bed apartments becoming €1.8-2k pm representing a 20-30% decline in rents type of a correction from the headline averages, with the more ridiculous rents taking much larger haircuts.

Seems insane the government are allowing this to persist. That's what lobbyists are for I suppose....

I just had a search on the rental section of daft. If you strip out studios, one beds and places costing more than €3k pm, there are 110 ads for rentals in Dublin city, with what I can tell as around €2.5k pm average for a 2 bed apartment.

When the average rent for the bare minimum sized place to have a small (IE one child) family requires a household income of at least €150k pa in order to pay maybe 25-30% on rent, something is seriously wrong. If you had two kids and maybe wanted a third bedroom as a renting family, you will pay on average €3k rent per month for something basic, which would be a household income of €200k pa to only pay 25-30% of income on rent.

The net effect of this catastrophic, generational devastation being inflicted via the rental market means that the country will need to keep importing the future pension pot contributors as there is no sustainability being created for young people and young families in particular to build a future in the country so long as they are renting. Ireland is definitely unique in this regard and do not believe that other countries have such a dearth in available housing as it is utter bollox.

Just looked on daft.

297 Properties to Rent in Dublin (County)

Is that an increase? I thought someone was saying only 70 in Dublin or something like that?

Surely this is better than renting off cuckoo funds?

Just found this.

https://www.rte.ie/news/business/2022/0809/1314797-rents-sought-rose-record-12-6-in-second-quarter-daft/

The report also found that on 1 August there were just 716 homes available to rent across the country, with fewer than 300 in Dublin.

Not much difference.

A lot of the commercial stuff is totally dead in the water now. I wonder if this will result in builders, materials, architects, surveyors, machinery etc now being at risk of sitting idle (or if not now, not long after the temporary energy crisis abates) unless they are redirected to the homebuilding sector. This will materially bring down housing construction costs to redirect the significant and redundant commercial property sector efforts towards that area. The State should be preparing a war chest to incentivise new housing developments for when the economic slowdown starts to reflect in our data instead of wasting the cash now on bailing out investors before the crash happens.